Milk Link pledges to raise prices

20 March 2001



Milk Link pledges to raise prices

By Robert Harris

MILK Link has announced that it intends to raise its selling prices by 3ppl as soon as possible to secure a future for its members.

The hike would lift the net farm price to 21ppl, the minimum needed to allow the dairy industry to survive, said chief executive Barry Nicholls.

“Farmers are losing on average around 2p on every litre they produce. This means as an industry they are losing over 280 million a year.

“No industry can, or should be expected to, stand losses of this order.”

Retailer and processor customers have been informed and discussions held over the need for a new price from 1 April.

Mr Nicholls believes that supermarkets could raise prices and pass the increases back down the supply chain, so no one in it would lose out.

“The price increase we have announced will equate to about 2p/pint.

“To the average household this will add up to less than 20p/week, a small price to pay to help secure the UK dairy industry.”

Milk Links output in the current milk year is 6% below quota as members leave dairy farming, said Mr Nicholls.

“It is not economically viable. Unless something is done quickly the industry will reach a level from which it will not recover.”

Meanwhile, United Milk has announced a 0.7ppl increase in its headline milk price to 19.5ppl from April.

Forward deals in the liquid milk sector and with dairy product manufacturers, particularly cheesemakers, have helped lift the price, claims the company.

“We remain confident that we can further improve this price going forward into the spring and early summer,” said commercial director Robert Danks.